Corrugated Box Industry in Distress Over Rising Kraft Paper Prices & Supply Disruptions

Business Wire India
The Corrugated Industry is staring at huge losses on account of frequent price increases in last one month by Paper Mills. To make the matters worse, the Kraft Mills are closing their Plants every month on pre-determined dates thus creating massive supply disruptions. Both these actions have caused extreme volatility and there seems to be no stability in sight in the near future either in terms of price or timely supplies.

Kraft Paper Mills in the Western Zone went for first closure from 27-31st January 2017, second one from 11-15th February and they have announced the next from 11-15th March, 2017. Paper Mills in other zones are also closing in sync with West zone. South zone mills also closed their plants from 11-15th Feb and North zone has announced their closure from 1st to 5th March, 2017.

Mr. Kirit Modi, President of Indian Corrugated Case Manufacturers Association (ICCMA), pan-India body, stated that, “Corrugated Box Industry in the country with 300 Automatic Units and more than 12,000 Semi-automatic Units are facing imminent closure on account of these disruptions. This Industry which is employing over 6,00,000 work force is playing a pivotal role in the Indian economy by producing almost 52,00,000 tpa boxes with the total market size of Rs.18,000 crores per annum. It not only caters to the packaging needs of the common man but also protects the environment as its products are 100% eco-friendly. The relentless price hikes will not only cause huge losses to the Box Industry but also to the nation as a whole in terms of lost revenues to the exchequer. Indian Corrugated Case Manufacturers Association (ICCMA) represents 170 Automatic Board Plants &Western India Corrugators Box Manufacturers’ Association (WICMA) represents Units in Western zone with membership strength of 413.”

Mr. Sunil Gupta, President of Western India Corrugators Box Manufacturers’ Association (WICMA) informed that the “cumulative impact of the price hikes on the Corrugated Box Industry, which is already in the doldrums, is to the tune of 12% minimum all across India. In addition to the cost impact, there is a serious issue of availability of Kraft Paper supplies in time to the Industry due to the frequent closures by all Kraft Paper Mills in various regions.”

Mr. Sunil Gupta further informed that under these circumstances the Industry does not have any other option but to pass this increase on to our esteemed patrons to sustain this impact. ICCMA & WICMA seek their understanding and support to grant a minimum of 12% price increase immediately on boxes so that the Box industry is able to cover supplies of Kraft Paper well in time to avoid any disruptions in the supply chain.


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